At the beginning of each financial year, you should check that the SGL Percentage & Quarterly Super Cap (max contribution base) in all of your relevant Wagemaster award configurations are up to date.
In the new financial year, there are two changes to employer superannuation that you must have in place before you begin paying employees. There is also clarification around a third topic:
- The employer Superannuation Guarantee Contribution (SGC) increases to 10%.
- The new Quarterly Contribution Cap associated with limiting high-earners super guarantee has increased from $57,090.00 to $58,920.00
- Change to minimum monthly earnings announced in the May 2021 budget but not due until July 2022.
Check Award SGL Values - Effective 1 July 2021
Complete all pays for the 2021 tax year before you make the Super changes.
Navigate to Reports Menu > User-defined Reports > Award super audit report.
At the beginning of each financial year, you should check that the SGL Percentage & Quarterly Super Cap (Max contribution base) in all of your relevant Wagemaster Award configurations are up to date. You can check the values in each award by running the Award Super Audit Report from Reports > User Defined Reports.
Before running the report please ensure that you have selected a pay period end date that is in the Financial Year you are checking.
Below is a sample of the Award Super Audit Report. As you can see on the last line, the Casual Award for the SAMPLE association has an incorrect SGL amount of 9.5%; also note the incorrect Quarterly Super Cap Amount (Max Contribution Base) for the 2021-22 Financial Year for the Casual SAMPLE.
It is important that you check each award configuration in Wagemaster has the Superannuation Guarantee Cap increased in accordance with the applicable value for 2021/2022. To make the necessary amendments ensure you have selected a PPE in the correct financial year, go into each award and update the values. The below screenshot highlights the fields you should check and amend if necessary.
Applying The Superannuation Changes
- Go To: Setup > Award.
- Select the award, then select Edit.
- Click on Payments Tab, Then select Superannuation.
- The screenshot below is an example of the superannuation configuration for all NES awards. Note the Superannuation Guarantee Cut-in Amounts remain unchanged at $450. Please check with your relevant associations or Fair Work if you are unsure of your own requirements for this.
- Click on Close to save changes and review the first payslip of the financial year to ensure the changes have been made correctly.
- Superannuation parameters need to be setup as per the Super Guarantee Levy (SGL) as set by the ATO as a minimum or in accordance with your association guidelines. Payment conditions do need to be considered carefully as they will affect the calculation.
Remember the SGL calculation is a monthly calculation, rather than a per pay calculation. Therefore, if checking a super calculation for an employee, it needs to be done in the context of all pays saved in the month, rather than a single payslip.
- Now repeat these steps for every award.
- This is to ensure the increased SGL to 10% and quarterly contribution cap of $58,920.00 are in place.
- If a super adjustment is required, do this in the last pay of the month as it will affect your super tracking and may result in underpayment of superannuation to your employees.
The Superannuation Guarantee Cut-in Amount is $450. Please check with your relevant award associations or Fair Work if unsure.
If the Award Super Audit Report is not visible in your list of user-defined reports, download from the help article linked here.